2007
DOI: 10.1080/00420980701255999
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The Impact of Terrorism on Italian Employment and Business Activity

Abstract: Despite the growth in research examining direct economic impacts of terrorism, the indirect impact of terrorism on the stability of local economies has generally been overlooked. Using panel data regression models and the most comprehensive open source database on terrorism currently available to researchers, the paper examines the impact of terrorism on employment and business outcomes in Italy from 1985 to 1997. It is found that terrorist attacks reduce the number of firms and employment in the year followin… Show more

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Cited by 60 publications
(52 citation statements)
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“…Other adverse effects of crime include extortion Daniele andMarani, 2011), kidnapping of workers (Clegg and Gray, 2002), and disruptions in supply chains (Barnes and Oloruntoba, 2005;Czinkota, 2005;Globerman and Storer, 2009;and Branzei and Abdelnour, 2010). Local demand may decline due to emigration, business relocation, and firm closures (Greenbaum et al, 2007). Also, Ashby and Ramos (2013) find a negative effect of organized crime on foreign investment in Mexico.…”
Section: Introductionmentioning
confidence: 99%
See 1 more Smart Citation
“…Other adverse effects of crime include extortion Daniele andMarani, 2011), kidnapping of workers (Clegg and Gray, 2002), and disruptions in supply chains (Barnes and Oloruntoba, 2005;Czinkota, 2005;Globerman and Storer, 2009;and Branzei and Abdelnour, 2010). Local demand may decline due to emigration, business relocation, and firm closures (Greenbaum et al, 2007). Also, Ashby and Ramos (2013) find a negative effect of organized crime on foreign investment in Mexico.…”
Section: Introductionmentioning
confidence: 99%
“…The potential adverse effects are through assessment of regional security risks (Kotabe, 2005), security budgets (Spich andGrosse, 2005 andCzinkota et al, 2010), extortion Daniele andMarani, 2011), kidnapping of workers (Clegg and Gray, 2002), disruptions in supply chains (Barnes and Oloruntoba, 2005;Czinkota, 2005;Globerman and Storer, 2009;and Branzei and Abdelnour, 2010), and decreases in local demand (Greenbaum et al, 2007). Local demand may decline due to emigration, business relocation, and firm closures (Greenbaum et al, 2007). (2000), Detotto and Otranto (2011);Forni and Paba (2000), Cardenas (2007), Ashby and Ramos (2013), and Robles et al (2013), use the number of recorded intentional homicides as a crime indicator.…”
Section: Related Literature On the Relationship Between Crime Andmentioning
confidence: 99%
“…From the previously mentioned arguments, we can suggest several factors that could happen within a region: Migration caused by criminal activities, decreases in personal consumption (Cullen and Levitt, 1999), reduction in personal use (Mejía and Restrepo, 2010), and relocation and closure of companies (Greenboum, Dugan and Lafree, 2007), given the fact that retail companies are largely affected by criminal organizations and extortion as firms in the retail sector are more likely to be victims of criminal organizations through blackmail and intimidation (Daniele and Marani, 2011).…”
Section: Discussionmentioning
confidence: 99%
“…Again, these effects are a likely consequence of entrepreneurs re-sponding to the uninsurable risks associated with terrorism, so they are effects of the second order. Similarly, Greenbaum et al (2007) for Italy show that terrorism has a destabilizing impact on business activity. Terrorist activity is found to reduce business formation and expansion, and employment.…”
Section: Transnational Terrorismmentioning
confidence: 99%